In a significant policy shift, the Nigerian Communications Commission (NCC) has mandated that charges for Unstructured Supplementary Service Data (USSD) banking transactions be deducted directly from customers’ mobile airtime, rather than their bank accounts.
The new directive, which took effect on Tuesday, June 3, 2025, was announced in a notice sent to customers by the United Bank for Africa (UBA). The bank explained that the change is in line with the NCC’s End-User Billing model, which transfers the cost burden of USSD transactions to mobile network airtime.
“Effective June 3, 2025, charges for USSD banking services will no longer be debited from your bank account,” the UBA statement read. “Instead, the charges will be deducted directly from your mobile airtime balance. Each USSD session will attract a charge of ₦6.98 per 120 seconds, billed by your mobile network operator.”
To ensure transparency, users will receive a consent prompt at the start of each USSD session, and airtime will only be deducted upon confirmation and network availability. Customers unwilling to continue under this billing model may opt out of USSD banking services entirely.
UBA encouraged its customers to utilise alternative digital banking platforms, including mobile apps and internet banking, for more seamless and flexible transactions.
A Step Toward Resolving Telco-Bank Disputes
The NCC’s move is seen as a strategic effort to address the long-standing dispute between Mobile Network Operators (MNOs) and Deposit Money Banks (DMBs) over unpaid USSD service fees, which reportedly ballooned to ₦250 billion.
In December 2024, the NCC and the Central Bank of Nigeria (CBN) jointly directed telcos and banks to resolve the lingering debt crisis. The situation reached a boiling point when telecom operators threatened to withdraw USSD services due to the mounting debt.
By January 15, 2025, the NCC ordered network providers to disconnect USSD codes assigned to nine banks over non-payment, setting a compliance deadline of January 27. Subsequently, on February 28, MTN Nigeria disclosed it had received ₦32 billion out of a ₦72 billion owed by banks, signalling partial progress.
This latest policy by the NCC appears aimed at preventing further accumulation of USSD debt and creating a transparent, user-approved billing process that benefits both telecom operators and financial institutions.
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